Suppose that a household borrows from the bank with %2 interest rate and uses the money for paying rent;
- Is this a Consumption?
- May households borrow money from the bank for consumption, not investment purposes? (I haven't seen such thing in a circular flow graph, that's why I'm asking)
- Is factor payments are being paid to another household who lends his savings to the bank?
- Is this payment of saving is counted as lender's income?
- What kind of approach of GDP would borrowing money from the bank for paying the rent, and interest income earned by another househould?